Tax Credits for Special Economic Zones: Percentage Allocated Established

Understanding the ZES Tax Credit:

To determine the percentage of ZES tax credits actually due to companies that made investments between November 1 and November 15, 2024, to purchase capital goods for production facilities located in special economic zones, a measure from the Revenue Agency had to be communicated.

To access the bonus, it was necessary to fill out and submit the form defined by the Revenue Agency with the provision issued on June 11.
However, the maximum amount that could actually be claimed by each beneficiary was equal to the tax credit requested in the last valid communication.

With the provision of July 22, 2024, the director of the Revenue Agency disclosed the percentage of tax credit actually available, amounting to 17.6668% of the amount requested, based on the decree 124 of 2023 introducing the bonus itself.

Expectations vs.
Reality:

The expected contribution from companies that made investments could have reached up to 60%.
However, the Agency’s provision revealing the actual percentage that could be claimed, at 17.66%, came as a surprise, although it could have been anticipated.

For those expecting a contribution equal to 60% of the requested amount, receiving only 17.66% is certainly disappointing.
The percentage granted and communicated by the Revenue Agency is equal to the total expenditure limit divided by the amount of bonuses in the requests submitted.

By July 12, 2024, applications were received for an amount of €9,452,741,120 in bonuses, while the available resources were €1,670 million.
Therefore, the tax credit due to each beneficiary is 17.66% of the requested amount, a negligible percentage confirming the initial suspicion: the allocated resources were insufficient.

The Controversy:

The Agency’s provision of July 22 sparked numerous controversies, not only from the opposition but mainly from companies and industry experts critiquing the decisions made in recent months.
The Government’s intention to revitalize the southern regions seemed robust, but the inadequate coverage left a sour taste in many mouths.

Francesco Cataldi, the president of the National Union of Young Chartered Accountants, highlighted the lack of planning in the provision, while Minister Fitto requested a review by the Revenue Agency on projected investments (those companies have booked for investments not yet realized, the amount of which will only be known in 2025).